NVT Ratio Indicates Potential Market Recovery

The NVT ratio, a key indicator for identifying local market tops and bottoms, currently signals a potential market bottom. An NVT value exceeding 2.2 suggests overbuying conditions, indicating a market top. Conversely, an NVT value falling below -1.6 indicates overselling conditions, suggesting a market bottom.

At present, the NVT value is below -1.6, pointing to local bottoms. If the 111-day moving average (DMA) remains above 65000, an upward movement may be possible in the coming days. These metrics suggest that the market is in oversold conditions and could enter a recovery phase.